Third of British consumers have no spare cash

The latest Consumer Confidence Survey, released today by Nielsen and the British Retail Consortium (BRC), reveals 32% of British consumers, the highest-ever percentage, have no spare cash.

The survey polled 31,000 consumers in 56 countries.

On a positive note, consumer confidence improved from quarter one to quarter two this year - the index went up five points to 72 - with people feeling better about their personal finances and their job prospects. However, British consumer confidence is down on last year overall.

Consumers are concerned about rising utility bills most of all, followed by the economy, then rising fuel prices. All of these factors will affect personal finances and household budgets over the next six months.

It's notable that people are already changing their shopping habits to meet the rising cost of living. In total, 71% of those surveyed have changed how they shop to try to cut back on household expenses. Also, 65% are choosing cheaper grocery brands to save money.

The Director General of the BRC, Stephen Robertson said:

"The squeeze on disposable incomes is getting tighter. A third of people said they have no spare cash - a new record high […] Even after paying out for essentials, households that do have spare cash are choosing to pay off debts and build-up savings rather than spend on the high street."